By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.
Partner, RSD Solutions Inc.
I guess it is official now; annual reviews suck. Last week Accenture made the news by saying
that they were dropping the practice of annual performance reviews of its
staff. Kind of rich for a consulting
firm that generated a lot of consulting fees designing annual reviews for many
of its clients.
In essence the argument is that annual reviews cause more harm than
good – or at a minimum, cost more to conduct than they are worth. Seems reasonable for most of the reviews that
I have personally experienced in my working career. The only type of effective review I ever had
was the type where a manager told me my “number”; short, sweet and straight to
the bank.
Annual risk reviews (quarterly, monthly, weekly,
daily and even continuous real time) are still all the rage and fashion. I am not sure that one wants to totally get
rid of risk reviews. However the recent
debate about performance reviews leads to some interesting questions about risk
reviews. Such as, is your risk review
process adding value? Does what you are
reviewing still need reviewing? Does the
risk review need to be updated to new realities? Is your risk review process efficient? All interesting risk questions. Perhaps it is time to review the risk review.
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